Income Pooling by Couples as Compensation for Work in Household Production

Jens Bonke2, Shoshana Grossbard 1, Catalina Amuedo-Dorantes1
1San Diego State U, USA, 2Rockwool Foundation, Denmark

We explain why some couples report that they completely pool their incomes while others don’t. The theoretical framework links such income pooling to possible compensations for work in household production. This leads to predictions regarding the effect of size of the marriage market on income pooling and to the recognition that variables previously included in analyses of income pooling and household finances may have more complex effects than what past research has postulated. We test our predictions on data from a unique Danish household survey that asked people whether they share all their incomes. We also use register data on income and labor supply.

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